BLACKBURN Rovers are struggling to compete as a small town in a big city league.

That's the verdict of chairman John Williams, who revealed in his annual report that the club will do everything it can to keep Premier League football at Ewood Park.

And Williams has vowed that the higher Mark Hughes's team finish in the Premiership, the more investment they can make in the team to ensure this is a long term reality.

Williams said: "We have to accept responsibility for our own business, and its unique problems. We are a small town, with a small fan base playing in the big city set-up of the Premier League.

"Clearly expectation levels have had to be lowered since the halcyon days of the Jack Walker era.

"To some extent the mists of reality have dawned over Ewood Park but let's not confuse mist with fog, or reality with lack of ambition - we are still punching above our weight.

"It is essential that we safeguard the business but at the same time we must not lose sight of what we are achieving.

"We will strive to keep the dream alive for our supporters and at the same time try to balance the books.

"We will have to work harder on and off the pitch and we will."

If Rovers can hang on to their current top 10 position, this will represent a leap of at least five places on 2004-05.

And with the Blackburn board recognising a connection between the team's finishing position in the Premiership and the money that goes on players' wages, it's hoped the league placing won't hit the squad as hard this year.

Williams said: "Last year in the annual report to shareholders we debated the relationship between league position and player wage costs.

"While the comparison may be rough and ready there clearly is, and should be, a link.

"We have underperformed for two seasons and with merit monies around £500,000 per place, this has dented our finances."

The issue of attendances has also inevitably reared its head in the report, with Williams admitting the falling crowds of the past two seasons is a trend that's set to continue.

And even the team's improved performances on the field this term doesn't guarantee a rise in crowd numbers.

"This is a complex issue," added Williams. "Research is telling us that winning games (and in an entertaining fashion) is important but other key factors are affordability, value, competitiveness, TV coverage, kick-off times, travel and the image of the game.

"They are all under investigation, not only by Rovers but by the Premier League.

"The club is represented at the League's Attendance Working Party, which is meeting on a regular basis to look for solutions.

"We have invested in data technology to better understand and subsequently target our audience.

"We have taken a proactive stance on price (and price stretch) offering some of the most affordable seats in the League, and our focus on juniors will certainly reap dividends going forward. The work goes on."

But with recent relegation scraps now a thing of the past, Williams has praised the work Hughes has done in alleviating these fears.

"This was the second year we have flirted with relegation.

"It is not a pleasant experience but is a salutary reminder of the demands of the league even with reasonably well-resourced playing squads," said Williams.

"Mark, in his first full season, has successfully negotiated the first third of the season and we are on target."